Pre-open moves

Global markets

Recent dollar strength boosted global markets, in particular Japan's Nikkei 225, which climbed 1.7%. European markets also advanced, helped by gains in commodity-related sectors. The gains in Europe came despite a profit warning from French automaker Renault and a warning on education-related publishing from Reed Elsevier
ENL, -0.14%

Broker action

Altria
MO, +1.14%
was downgraded to in line from outperform at Goldman Sachs due to concerns that the timing of the company's break up could come much later than previously expected. Analyst Judy Hong feels the current consensus estimate that the break up would occur in early- to mid-2006 is "overly optimistic." Hong is concerned that potential certification of litigation may push the break up date by at least 2 years.

J.P. Morgan downgraded oil producer ConocoPhilips
COP, -0.62%
to neutral from overweight, saying higher capital spending may pressure returns and production lags peer group. The broker also told clients that the company is too big to purse smaller upstream projects that would add meaningful volume growth to its smaller domestic peers.

New construction of U.S. homes fell 5.6% in October to a seasonally adjusted annual rate of 2.014 million, the Commerce Department said Thursday. Building permits - which foreshadow future activity - dropped 6.7% to 2.07 million annual units. Building activity remained fairly robust in October, despite higher mortgage rates and waning consumer confidence. Economists surveyed by MarketWatch were looking for a smaller decline to about 2.07 million starts in October. September's housing starts were revised higher to 2.134 million from 2.108 million, the highest since February.

First-time claims for state unemployment benefits fell to their lowest level in seven months, the Labor Department reported Thursday. The number of initial claims in the week ending Nov. 12 fell 25,000 to 303,000. It's the lowest level since the week ended April 16. The drop was sharper than expected. The consensus forecast of Wall Street economists was for claims to inch lower to 322,000.

IMS Health
RX, +0.22%
agreed to let Holland's VNU cancel its $7 billion acquisition of it, as a majority of VNU shareholders opposed the deal. The companies had previously warned the deal might be cancelled. IMS Health in response said its board has approved the buyback of 10 million more shares, on top of its existing plan that still allows for 4.4 million shares to be bought back.

Limited Brands
LTD, +5.35%
as expected reported a third-quarter net loss of $12.3 million, or 3 cents a share, with revenue flat at $1.892 billion and same-store sales for the period down 3%. The operator of retailer stores including Victoria's Secret, Bath & Body Works and Express said it's comfortable with the current First Call consensus for fourth-quarter earnings of $1 a share. It also said its board has approved a $200 million share buyback plan, which incorporates $67 million remaining under its previous $100 million repurchase program.

Applied Materials
AMAT, -0.88%
dipped 2.9% in light pre-open trade after it reported a 46% decline in quarterly profit, though it also said new orders rose 15%, above the company's earlier target.

E-Trade Financial Corp.
ET, -1.06%
priced 36 million common shares at $18 a share in a bid to raise $648 million toward its upcoming $1.6 billion purchase of brokerage firm BrownCo. E-Trade is also issuing $250 million of senior notes due 2015 and $450 million of equity units to finance the acquisition of the JP Morgan Chase
JPM, -0.45%
unit.

Pottery Barn owner Williams-Sonoma
WSM, +1.28%
said third-quarter net income rose 30% to $37.1 million, or 31 cents a share, with revenue up 14.5% to $828 million. Comparable store sales rose 4.4% and footage rose 10.6%. Analysts polled by Thomson First Call were looking for earnings of 30 cents a share on revenue of $822 million. It raised the lower end of its fiscal year guidance to $1.86 a share, and kept the upper end unchanged at $1.88.

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